Hunger for dim sum intensifies

An appetite for offshore renminbi bonds is spreading across the globe, most recently to France and South Korea.

The falling cost of swapping offshore renminbi, or CNH, bonds into other currencies has prompted foreign issuers to seek funding in the still-nascent market since the beginning of the year.

China’s recent easing of monetary policy, relaxation in rules governing cross-border currency flows and lack of Chinese borrowers issuance in the offshore market have caused cross-currency swap rates between the dollar and CNH to hit an all-time high in recent weeks.